JPMorgan previously distributed its products to institutions, hedge funds and ultra-high-net-worth individuals through JPMorgan Private Bank. The investment bank decided to form this alliance with Fidelity because it gives it access to a "far broader set of investors," noted Steve Black, co-CEO of JPMorgan's investment banking business. "Becoming Fidelity's primary provider of new issue equity and debt products is a key competitive advantage for JPMorgan," Black added.
For its part, Fidelity decided to partner with JPMorgan because it is "one of the top underwriters in the industry," said Ellyn McColgan, president of Fidelity Brokerage. "We believe that access to the additional investment opportunities offered through this relationship will significantly benefit our customers."